Great article written by a colleague of mine

Let Someone Else Squeeze Oil's Last

http://thestreet.com/options/futuresshocktsc/10214281.html

Short snip:

Everyone is familiar with the evolution chart, showing the path from a diminutive tree-swinging primate through various knuckle-dragging beefcakes and on up to the present-day pinnacle of homo economicus. Economies evolve as well.
The energy economy is still in the hunter-gatherer stage. We hunt deposits of petroleum, natural gas, coal and uranium, or to a much lesser extent, we gather sunshine, wind, hydroelectric and other non-fossil sources.
One consequence of hunting and gathering, as noted in last week's mention of Hubbert's Curve, is diminishing return on investment. This is the dilemma faced by the current oil and gas industry. The futures market expects prices to continue to rise, and prices must continue to rise if we are to stimulate both new production and increased efficiencies of demand. However, the inescapable consequence of diminishing returns is that the present high returns for oil companies simply are not sustainable, for reasons enumerated last week.